The European single market crisis Essay Example | Topics and Well Written Essays - 4000 words

The atomic number 63an private market crisis - Essay ExampleThis essay entails of the factors that the Europe foc ingestions to use in making positive changes stimulate scotch growth. It outlines the various approaches that the surface area seeks to use in economic recovery process, asserting relative data sources and the theoretical perspective on the datas view. The countrys policies propelled tremendous economic growth since the year 2009, with a relative growth in GDP. The highest bare(a) implication on the GDP was an over altogether increase by 3% throughout the years of 2009-2011. This was feasible despite the many challenges that the state suffered after implementing the single market, which affected economic integrations. B Balassa encouraged the executing of single markets with arguments that it would friend the country achieve monetary union in the globe. They argued that single markets would help refuse most of the barriers though this was not possible with the fr ee movement of goods, services, people, and even capital (Baldwin and Wyplosz, 2009 256). As the European states aim at improving on their financial capacities, some of the main objectives laid down help in strategizing plans for the progress of the economy (Nello, 2009 219). The stability of the euro is necessary to help build confidence to other states in trade transactions. The issue of maintaining the tax rates for enabling the prices of commodities to suit the consumer financial ability. Tax increase results to an increase in production costs and thereby increasing the commodities cost. This in return increases the living costs and demands for increases in salaries by the consumers. Another issue lies on creating an internal market for local commodities by laying implication regulations within the region. This helps solve the cross border conflicts and increases efficiency of financial institutions between the regions (Piggott and Cook, 2006 76). The crisis in the formation of single markets Through the integration of European countries, after periods of World War II between America and Europe has helped calm the economic crisis. Many economic treaties enacted helped improve on economic performance and to strengthen contestation between the regions to help increase the quality competence of products from the both regions (Craig and Elliott, 2009 209). The European Union also passed several(prenominal) acts in their agreement and gave directions on financial expenditures towards developing the rural areas and developing reliable energy production, which would majorly ascent on the emergence of new industries increasing the economic activities in the region. Through the cohesion between the two regions, the internal market developed competence in the global market and thereby this ensured that the economy was warm even after the crisis (Cini and Borraga, 2010 164). The European single market was at efforts to pursue single currency for all the member s tates and aimed at getting involved in international trades as one joint unit. They believed that such(prenominal) effort would help increase the trade area, reduce operational costs, and implement similar economic policies crossways al the union states. They had similar tariffs and quota systems with outside states but free trade within member states. They set about challenges on standardization of qualities and regulations and specifications for production. The lag by the union states in